Price Shrinking
The enhancement of software capability and the continuous upgrading of technology have accelerated the iteration speed of consumer electronics. On the one hand, more differentiation has been achieved in software, and on the other hand, the application functions of the core IC have been expanded with more powerful features. Promotion and brand strategy are more reinforced as the Differentiation Strategy. But the homogeneity in the design of hardware such as PCBA has intensified. When new products are launched, the price of old products will be squeezed, and price competition often becomes one of the main marketing methods. Products need to continue to offer costs down after they are launched. The pressure to cut prices will be transmitted retrogradely to some processing plants.

Fluctuating demand
After trial production, consumer electronics will build a buffer according to a demand forecasting model. But most products will suffer drastic fluctuations in demand after it is launched. When the demand increases significantly, the supply chain needs to be able to replenish the goods quickly. Otherwise, the supply chain needs to be timely adjusted to control overall inventory risk. The supply chain of PCBA has to balance overbooking and less booking.

Short product life cycle
The life cycle of High-Volume Low-Mix PCB Assembly is usually short. The design cycle of most products is less than one year, and the sales cycle will last 1-2 years and then be replaced by next-generation products. The challenge of a short life cycle is that sellers must suffer from the high level of stock of raw material and finished goods in a market downtime. It is not enough even if they would like to offer a discount. Another potential risk is that the stock may change from slow-moving to excess, even obsolete parts. Normally, the former situation will come if the production plan cannot be timely adjusted according to the market performance. A more severe influence will occur If the compatibility between the generation and the generation products is relatively poor. Theoretically, customized mechanical/plastic parts and the unique controller will rank at the top2 of excess.